KHON News

Oahu seeing increase in foreclosures

By Marisa Yamane

It's a trend that's growing across the nation -- homes going into foreclosure.

Local realtors say it's a trend that's also happening here.

Our foreclosure rate is nowhere nearly as bad as parts of California and Vegas, but realtors say it is getting worse here.

A five bedroom house in Kaimuki.

A three bedroom fixer-upper in Waipahu.

A two bedroom townhouse in Mililani.

Another one in Kapahulu.

And a four bedroom house in Kailua.

All in foreclosure.

"Foreclosures have doubled from last year to this year," said realtor Carlin Yamashita.

But compared to the rest of the nation, Oahu is doing fairly well.

According to RealityTrac -- a listing firm that tracks foreclosures -- Detroit; Stockton, California, and Las Vegas had the highest foreclosure rates last year.

Honolulu came in far behind.

"The reason Hawaii isn't feeling the foreclosure as much as the mainland is number one, Hawaii didn't participate in as much aggressive financing. And number two, we still have the income level to sustain a median price of $600,000 per home here in Hawaii," said Yamashita.

There are currently 422 homes in foreclosure on Oahu that are listed for sale in www.oodle.com, including this four bedroom, three bath house on Kaimake Loop in Kailua.

"I was surprised to hear it was in foreclosure. The house has been empty for two years," said neighbor Nani Kauka.

Neighbors say a family from the mainland had purchased this house in 2005 for a little over a million dollars.

"Which really surprised us because it's a two-story house in a regular neighborhood," said Kauka.

The asking price is now $875,900.

"What the foreclosures is caused by is the value is declining and the homeowner having slight problems with the payment, but the value isn't there so they're more likely to walk away from the property," said Yamashita.

So, is it a good idea to buy a home in foreclosure?

That depends on what you're looking for.

You may get a good deal as far as price, but buyer beware because you're getting the home "as is."

There are homes in foreclosure all across the island, however, realtors say most of them are in West Oahu.

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